A 7/26/09 article in the Wall Street Journal online, “Bed Bath & Beyond Shines in Troubled Retail Sector,” about retail chain Bed, Bath and Beyond underscores the opportunities available to those committed to using the financial crisis to gain market share.
The company has taken advantage of the weakness of competitors–principally, Linens & Things, which is going out of business–and has expanded aggressively. Bed, Bath and Beyond has positioned itself for further growth, too, because its buybuy Baby stores, currently concentrated in the Northeast, can be expanded throughout the rest of the country.
It’s worth noting that, while companies thinking of expanding have often focused on opportunities for acquisitions or have tried to move into new markets, Bed, Bath and Beyond took a safer route by staying within its existing, core business. Yet the company is still winning big-time. As the WSJ notes, the stock is already up 18% this year, and the article suggests there could be a further 25% gain in front of investors.
Not bad for a company operating in the retailing sector, which has been hammered. Imagine the opportunities available in healthier parts of the economy.
August 23, 2009
From a customer perspective, I believe one of the reasons they are stronger than their competition is customer loyalty. The accept their famous 20% off coupons even if they’re expired, so if you have an item you need and it’s sold at BBB, and you have a 20% coupon, why would you shop anywhere else? Additionally, you can easily return gifts and gift cards for CASH, a huge benefit to the bridal registry program. These two things combined are why I recommend BBB to everyone I know. BBB can save money by holding off on advertising and direct mailing coupons, because their faithful customers have stacks of those coupons saved up!